seeking to invest in hospitality real estate in mid-to upper-tier segments
|DENVER — October 14, 2003
— Richfield, a SWAN Solution, has embarked on a plan to invest in a select
number of real estate opportunities in the year ahead. The Sliver Equity
plan calls for Richfield to deploy capital in a partnering relationship
with individual investors, funds and venture capital groups to effectuate
the acquisition of hotel assets. Swan Holding, the parent of Richfield,
has significant capital available.
“Our strategic investment plans will allow us to utilize our financial capacity and our ability to provide practical, profitable hotel management services,” said Aik Hong Tan, Richfield president. “We are looking to develop relationships with a select number of investors, and are currently reviewing several hotel opportunities in specific markets.”
Richfield is more opportunistic than ever before, Tan said.
“Going forward, we will take full advantage of our financial capacity to produce management fee income, while taking full advantage of the capital appreciation in these assets,” Tan said. “We know we can manage effectively, and as a result our capital investment will be justified by an improved market share and a healthier bottom line.”
From a positioning standpoint, Richfield said it is seeking hotel opportunities in the mid to upper full-service segment with strong commercial demand characteristics.
“We are looking at acquiring hotels to be represented by a brand having a strong commercial delivery system, most of which are located in primary and secondary markets,” said Tom Conran, Richfield, Vice President of Business Development. “We acknowledge the risk associated with investing our capital. As such, we are demonstrating to our partners our confidence in being able to deliver management resources and services required to increase the earnings potential of the hotels to be acquired.”
Investment expert applauds initiative
Bob Hunter, producer of the acclaimed “Hotel Investment Conference – Atlanta” and president of Hunter Realty Associates, said Richfield’s initiative strongly substantiates that the industry is on the road to recovery.
“Now is a great time to be an investor in the hotel industry,” Hunter said. “We’re improving our performance industrywide and the future is bright. I am pleased to see that Richfield shares this confidence in the industry’s future and that they are willing to invest their dollars alongside owners to confirm that confidence.”
Swan Inc. is headquartered in Denver with approximately 1,000 employees. The company's shareholders include City e-Solutions Limited (CES) listed on the Hong Kong Stock Exchange, and Millennium & Copthorne Hotels plc, a U.K.-based company listed on the London Stock Exchange, operating 91 hotels worldwide.
Aik Hong Tan
|Also See:||Cleveland’s Glidden House Inn Taps Richfield For Its Management Culture / July 2003|
|Richfield Releases Impressive Results for Diverse Portfolio of Managed Hotels / June 2003|
|Distinctive Management Culture Contributes to Richfield’s Triumph and Team’s Longevity/ Jan 2003|